Regional research office projects higher growth for Cambodia this year

Source: Xinhua| 2018-09-12 20:55:52|Editor: xuxin
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PHNOM PENH, Sept. 12 (Xinhua) -- Cambodia's economy is predicted to continue its strong growth momentum in 2018, supported by robust construction activities, strong rebound in garment manufacturing, and solid growth in tourism-related services, the ASEAN+3 Macroeconomic Research Office (AMRO) said on Wednesday.

"Cambodia's economy is expected to grow at 7.2 percent in 2018, slightly higher than 7 percent in 2017, while inflation remains relatively low and stable," AMRO lead specialist Seung Hyun Hong said in a statement.

Higher government spending because of rising public investment and public sector wages will provide additional support to growth in 2018, the statement said, adding that inflation remained relatively stable at 2.9 percent in 2017, but is projected to increase slightly to 3.1 percent in 2018 amid recent rising energy prices.

Cambodia's external position continues to strengthen reflecting robust foreign direct investment (FDI) inflows which more than cover the current account deficit. As a result, the overall balance remains in surplus leading to a build-up in foreign reserves from 6.7 billion U.S. dollars in 2016 to 8.8 billion dollars in 2017, it said.

The gross international reserve is projected to reach 10 billion dollars by end-2018, covering around six months of goods and services imports, the statement added.